It shall be unlawful for any person, directly or indirectly, by
the use of any means or instrumentality of interstate commerce or
of the mails, or of any facility of any national securities
exchange -
(a)(1) To effect a short sale, or to use or employ any stop-
loss order in connection with the purchase or sale, of any
security registered on a national securities exchange, in
contravention of such rules and regulations as the Commission may
prescribe as necessary or appropriate in the public interest or
for the protection of investors.
(2) Paragraph (1) of this subsection shall not apply to
security futures products.
(b) To use or employ, in connection with the purchase or sale
of any security registered on a national securities exchange or
any security not so registered, or any securities-based swap
agreement (as defined in section 206B of the Gramm-Leach-Bliley
Act), any manipulative or deceptive device or contrivance in
contravention of such rules and regulations as the Commission may
prescribe as necessary or appropriate in the public interest or
for the protection of investors.
Rules promulgated under subsection (b) of this section that
prohibit fraud, manipulation, or insider trading (but not rules
imposing or specifying reporting or recordkeeping requirements,
procedures, or standards as prophylactic measures against fraud,
manipulation, or insider trading), and judicial precedents decided
under subsection (b) of this section and rules promulgated
thereunder that prohibit fraud, manipulation, or insider trading,
shall apply to security-based swap agreements (as defined in
section 206B of the Gramm-Leach-Bliley Act) to the same extent as
they apply to securities. Judicial precedents decided under section
77q(a) of this title and sections 78i, 78o, 78p, 78t, and 78u-1 of
this title, and judicial precedents decided under applicable rules
promulgated under such sections, shall apply to security-based swap
agreements (as defined in section 206B of the Gramm-Leach-Bliley
Act) to the same extent as they apply to securities.

For transfer of functions of Securities and Exchange Commission,
with certain exceptions, to Chairman of such Commission, see Reorg.
Plan No. 10 of 1950, Secs. 1, 2, eff. May 24, 1950, 15 F.R. 3175,
64 Stat. 1265, set out under section 78d of this title.